Interstate Insurance Product Regulation Compact (Interstate Compact)
Interstate Insurance Product Regulation Compact
The Interstate Compact is intended to improve the speed-to-market conditions for life insurance, annuity, disability income and long-term care products by establishing a single point-of-filing for product review. The ability to obtain approval from a single source for the sale of insurance products in several states gives insurers a more efficient regulatory process than the current multistate product review system. Faster product review will benefit NAIFA members by making new products available for sale to consumers sooner.
NAIFA supports the Interstate Compact. NAIFA members, consumers and insurers will all benefit because new insurance products satisfying uniform standards will be available sooner. A single point-of-filing for product review will also free up insurance department resources to address other important issues. NAIFA has represented agents in the development of the Compact and the Compact commission's rules and bylaws by submitting multiple written comments to the NAIC and the Compact commission and by testifying at NAIC and Compact commission public hearings. NAIFA and AHIA currently serve as the only agent groups on the Compact commission industry advisory committee, which assists with the operation of the Compact commission. NAIFA encourages its members to support adoption of the Compact in every state and assists state associations with this effort.
NAIC adopted the Compact as a model law in July 2003. With NAIFA's participation the Compact has been endorsed by the National Conference of Insurance Legislators, as well as by the National Conference of State Legislatures. The Compact has been adopted in 31 states and is under consideration in several others. The Compact became operational in 2006 when it was adopted by 26 states (states with over 40 percent of the premium volume for the covered products). The Compact commission continues to develop rules for its operations and uniform standards for certain product lines. NAIFA is participating in the development of these rules and standards. The Compact commission received its first product filings in June 2007, and approved them within 30 days of submission.
Listen to the NAIFA GovPod on the State of State Insurance Regulation.
Quick facts about the Interstate Compact:
- The Interstate Compact is an initiative of the National Association of Insurance Commissioners (NAIC) to improve the speed-to-market conditions for life insurance, annuity, disability income and long-term care products.
- The Interstate Compact does not impact property/casualty or health insurance products.
- The Compact does not address any other area of insurance regulation.
- The Interstate Compact Commission has appointed NAIFA as the agent representative to the Interstate Compact Commission's Interim Insurance Industry Advisory Committee.
- The Compact's goal is to get life insurance, annuity and related insurance products to market faster by allowing companies to file new products in one place for approval in every state that enacts the Compact law.
- The Compact aims to give insurers who offer products in more than one state a more efficient product approval process than the current multistate system and to make new products available for sale to consumers sooner.
- Currently the Interstate Compact has been adopted by 30 states and is pending in others.
Staff Contact:
Michael E. Gerber
Vice President and General Counsel
mgerber@naifa.org
More information
- Interstate Insurance Product Regulation Commission
- NAIFA’s February GovPod Delivers a “State of the States” on Regulatory Reform (NAIFA GovTalk, February 1, 2008)
- Protecting Your Business (Advisor Today, July 2007)
- Interstate Compact Receives its First Product Filings (NAIFA Frontline, July 2, 2007)
- Tennessee Becomes 30th Member of the Interstate Compact (NAIFA Frontline, June 1, 2007)
- Make Agent Licensing Work for Agents (January 2007 Advisor Today)
- Interstate Compact Commission Holds First Annual Meeting (NAIFA Frontline, December 1, 2006)
- All Systems Go For Interstate Compact (August 2006 Advisor Today)
- NAIFA Appointed to Interstate Compact Committee (NAIFA Frontline, July 5, 2006)
- Interstate Compact Commission Holds First Meeting (NAIFA Frontline, June 15, 2006)
- 26 States Adopt Interstate Compact (NAIFA Frontline, May 15, 2006)
- One Standard for Agency Licensing (August 2004 Advisor Today)
Back to Main Insurance Regulatory Reform Page
- Interstate Insurance Product Regulation Compact
- Optional Federal Charter
- NARAB II
- Other State Reform Efforts
Visit the Legislative Action Center to learn more about the Interstate Compact.